Published On : Thu, Mar 17th, 2016

No bids for Vijay Mallya’s Kingfisher House, auction fails: Sources

Mumbai: An attempt by the State Bank of India (SBI)-led bank consortium to auction former liquor baron Vijay Mallya’s Kingfisher House in Mumbai failed on Thursday.

According to sources, there were no bidders during the e-auction of the Kingfisher House.

The consortium had evaluated the base price of the Kingfisher House at Rs 150 crore and bid increment amount was Rs 5 lakh.

SBICAP Trustee Company, SBICAP’s wholly owned subsidiary, held the e-auction of property under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

The SBI-led lenders consortium had taken over the Kingfisher House near city airport in February 2015 worth around Rs 150 crore, after winning the case in the local court.

They have also taken over the Kingfisher Villa in Goa, worth around Rs 90 crore.

So far, the lenders have recovered around Rs 1,600 crore from their original exposure of Rs 6,900 crore by selling pledged shares and other monetisable collaterals.

The banks have moved the Debt Recovery Tribunal, Bengaluru and the Karnataka High Court and the company said it is contesting their claims. Banks are now charging 15.5% compounded interest on this principal amount, which have not been serviced since January, 2013.

SBI has the highest exposure of Rs 1,600 crore to the beleaguered Kingfisher Airlines. Other banks that have exposure to the airline include Punjab National Bank and IDBI Bank (Rs 800 crore each), Bank of India (Rs 650 crore), Bank of Baroda (Rs 550 crore), Central Bank of India (Rs 410 crore).

UCO Bank has to recover Rs 320 crore, Corporation Bank (Rs 310 crore), State Bank of Mysore, (Rs 150 crore), Indian Overseas Bank (Rs 140 crore), Federal Bank (Rs 90 crore), Punjab & Sind Bank (Rs 60 crore) and Axis Bank (Rs 50 crore).